Goldman to pay $215 million to settle gender bias suit from 2010
By Steve Gelsi
Goldman Sachs Group Inc. and plaintiffs in a class action lawsuit over allegations of gender bias said Tuesday they reached a $215 million settlement in the legal action involving 2,800 female associates and vice presidents.
The suit, Chen-Oster v. Goldman Sachs & Co. LLC, was filed in 2010.
"As one of the original plaintiffs, I have been proud to support this case without hesitation over the last nearly 13 years and believe this settlement will help the women I had in mind when I filed the case," said Shanna Orlich.
"My goal in this case has always been to support strong women on Wall Street," said Plaintiff Allison Gamba. "I am proud that the result we achieved here will advance gender equity."
Goldman Sachs agreed to hire an independent expert to analyze its performance evaluation and promotion processes to managing director from vice president "to ensure they generate accurate, reliable, and non-biased outcomes," the statement from the two parties said.
An independent expert will also conduct pay equity studies. Goldman Sachs pledged to investigate and address any pay gaps.
"While this is a three-year commitment, Goldman Sachs independently will continue such reviews periodically as it has in the past," the statement said.
About a third of the settlement will go toward plaintiffs' legal fees, a source familiar with the situation said.
The most recent partner and managing director classes at Goldman Sachs included the highest percentage of women in the history of the firm, with nearly a third of those roles awarded to females, the source said.
"Goldman Sachs is proud of its long record of promoting and advancing women and remains committed to ensuring a diverse and inclusive workplace for all our people," said Jacqueline Arthur, global head of human capital management at Goldman Sachs, in a statement. "After more than a decade of vigorous litigation, both parties have agreed to resolve this matter. We will continue to focus on our people, our clients, and our business."
Goldman Sachs stock is down 4.9% in 2023, compared with a 7.8% increase in the S&P 500 .
-Steve Gelsi
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May 09, 2023 08:58 ET (12:58 GMT)
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